RESULTS AND OUTLOOK REFLECT STRONG GLOBAL DEMAND FOR LIVE EXPERIENCES

2022 FINANCIAL OVERVIEW (reported FX, vs 2019): Record Results Reflect Incredible Fan Demand
• Revenue Up 44% to $16.7 Billion
• Operating Income Up 125% to $732 Million
• AOI Up 49% to Over $1.4 Billion
• Operating Free Cash Flow Up 3.9x to $1.8 Billion
• Adjusted Free Cash Flow Up 94% to $967 Million, Converting 69% of AOI

2022 OPERATIONAL HIGHLIGHTS (vs 2019): Record Attendance, Gross Transaction Value, and Sponsorship Activity
• Investment in Artists Up 45% to Over $9.6 Billion as Live Nation Continues to Be The Largest Financial Supporter of Musicians
• Highest Live Nation Concert Attendance – Up 24% With Over 121 Million Fans Attending 43,600 Events
• Ancillary Per Fan Spending Growth Continues, Up At Least 20% Across All Major Venue Types – Amphitheaters, Festivals, Clubs and Theaters
• Ticketing Fee-Bearing Gross Transaction Value Up 54% to $27.5 Billion
• Sponsorship Revenue Reaches Roughly $1 Billion, Up 64%

2023 OUTLOOK (as of mid-February, vs 2022): Positioned For Ongoing Growth, As Fans Continue To Prioritize Concerts
• Event-Related Deferred Revenue Starts Year at $2.7 Billion, Up $400 Million
• Concert Ticket Sales Are Over 50 Million, Up 20% With International Up 25%
• Ticketing Fee-Bearing Gross Transaction Value Up 33% to $9.8 Billion 
• 2023 Committed Sponsorship Up Double-Digits, With Over 70% of 2023 Revenue Committed

Live Nation Entertainment, Inc. (NYSE: LYV) today released financial
results for the quarter and full year ended December 31,
2022.

In 2022, we saw fans around
the world continue to prioritize their spending on attending live events,
particularly concerts.  Our research
consistently tells us that concerts are a top priority for discretionary
spending, and one of the last experiences fans will cut back on – and we are
seeing this play out in both our results for 2022 and early indicators for
2023.

With this strong demand, last
year in the concert business we had 121 million fans attend our shows across 45
countries, while in ticketing, we helped connect 550 million fans with their
favorite artists, teams and other performers. 
In both cases, the majority of our growth came from international
markets, further reinforcing the global nature of untapped fan demand and the
opportunities we have for growth, as we help artists reach more fans with their
live music.

Record Attendance at Concerts

In concerts, despite many
markets still closed for part of last year, we grew attendance by 24% vs 2019
to 121 million fans at 44 thousand events, which drove revenue up 43% vs 2019
to $13.5 billion.  This growth came from
all markets and venue types – every venue type from clubs and theaters to
stadiums to festivals had double-digit attendance growth vs 2019.

We invested $9.6 billion in
putting on artists’ shows in 2022, working with the largest superstars to
artists just getting started, and all those in-between.  This is up 45% from 2019 and further
reinforces our role as the largest contributor to artist income.  As part of this, we helped shift $700 million
to artists with more market value ticket pricing – even as the entry price to a
show stayed below $35 in the U.S.  Typically
90% of ticket sales for Live Nation shows go to artists – this is particularly
important as artists are increasingly reliant on touring as they get much
smaller revenue shares from other music revenue streams.

Part of our fan growth
continues to come from venues we operate globally – hosting almost 50 million
fans in 2022, with international markets again delivering the majority of our
growth.  At Venue Nation, we continued
our focus on elevating the fan experience and providing a range of options for
enhanced products and services.  As a
result, last year we grew our average revenue per fan by over 20% vs 2019 at
all venue types.

Performance of Ticketing Reflects Tremendous Fan Demand

In ticketing, our strategy
for success is simple: We focus on developing the leading software for venues.
To ensure we deliver the best enterprise platform, we invest tens of millions
of dollars every year to continue innovating every aspect of ticketing
technology and products.  Artists are the
venue’s largest clients, and we are regularly being asked to create new
products to help address their ticketing needs.

Amongst our innovations are
products such as Verified Fan, designed to help artists cut down resale, and we
have seen this used for our 400 tours including recent onsales for Beyonce,
Madonna and Morgan Wallen.  Generally,
Verified Fan onsales have approximately 5% of inventory end up on resale sites
vs 20-30% that is typical for non-Verified Fan onsales.  Venues and their artist clients see the
result in their ticket sales, which is a large part why so many venues choose
to work with us.

Looking at our 2022
results:  We grew our fee-bearing ticket
volume by 28% from 2019 to 280 million, which in turn drove our fee-bearing GTV
up by over 50% vs 2019 to $28 billion across 38 countries.  As a result, our ticketing revenue was $2.2
billion, up 45% vs 2019.  Along with
these results for the year, we signed 23 million net new tickets in 2022, 70%
of which were with international clients, setting the stage for continued
global growth.

Sponsorship Reaches Approximately $1 Billion in Revenue

In our sponsorship business,
we have seen that brands are as eager as fans to re-engage with our
platforms.  In 2022, we had 120 large
strategic sponsors globally across our business, 32% more than we had in 2019,
including brands such as PayPal, GoPuff, Hulu and Snap.  These large partners drove over 80% of our
revenue growth, with overall revenue up 64% to $1 billion.  As with concerts and ticketing, our
international markets led this growth, with international sponsorship up over
70% vs 2019.

Looking Ahead to 2023

As we now have
many of our 2023 shows on sale, we continue to see very strong consumer demand
globally, with no sign of any slowdown. 
We have four key leading indicators at this time of the year, all
pointing toward another record year and even greater success in 2023.

First, our
deferred revenue at the end of 2022 was $2.7 billion, up 125% from 2019 and up
18% from 2021 which benefited from a high volume of rescheduled shows.  Next, as of mid-February, ticket sales for
our shows this year exceed 50 million fans, up 20% from this point last year,
with international growth at 25%.  Then, our global ticketing fee-bearing gross
transaction value is up 33% to $9.8 billion through the same period.  Finally, over 70% of our planned sponsorship
activity for the year is confirmed, again up double-digits relative to this
time last year.

Regulatory Environment and Reforms

On the regulatory front: The ticketing industry is
more competitive than ever, and our market share has gone down, not up, since
the Ticketmaster merger.  Because of the
competitive bidding process, venues regularly take more of the economics on
every renewal, as they set and keep a majority of the service fees.  Since signing the extended consent decree
related to the Ticketmaster merger, we remain in constant conversation with the
Department of Justice’s monitors, and do not believe there have been any
violations.

On ticketing reforms: We believe that greater
transparency on the entire ticketing ecosystem will improve the industry, and
we have been engaging with policymakers to advocate for reforms.  The biggest challenge facing the industry is
chaos at the onsale, where fans cannot get the tickets at the price the artist
sets, yet they see pages of secondary sites with tickets 5 times face value because
of scalpers.  This has been a big topic
in the industry and conversations at the Pollstar Live conference this week
focused on how to protect the connection between artists and their fans. 

To help drive
progress, we have launched the FAIR Ticketing Act, which says: 

Artists should decide resale rules in order to protect their ability to use face-value exchanges and limited transfer to keep pricing lower for fans, and prevent scalpers from exploiting fans.Selling speculative tickets should be illegal so scalpers cannot use deceptive tactics to trick fans into spending more or buying tickets the seller does not actually have.The scope of the BOTS Act needs to be expanded and enforced to deter those who break the law, cheating artists and fans in the process. And there needs to be industry-wide all-in pricing so fans see the full cost they are paying up front.

Artists create their music and their concerts.  It’s only fair that they create their ticketing rules, too.  We will always be on the side of the artist, who are the best advocates for their careers and their fan base.

Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.

The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial performance, operational matters and potentially other material developments. Interested parties should visit the “News / Events” section of the company’s website at investors.livenationentertainment.com to listen to the webcast. Supplemental statistical and financial information to be provided on the call, if any, will be posted to the “Financial Info” section of the website. A replay of the webcast will also be available on the Live Nation website.

Notice Regarding Financial
Statements

The company has provided
certain financial statements at the end of this press release for
reference.  These financial statements
should be read in conjunction with the full financial statements, and the notes
thereto, set forth in the company’s Annual Report on Form 10-K filed with the
Securities and Exchange Commission today and available on the SEC’s website at sec.gov.

About Live Nation Entertainment:
Live Nation Entertainment, Inc. (NYSE: LYV) is the world’s leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For additional information, visit investors.livenationentertainment.com.

FINANCIAL HIGHLIGHTS – FOURTH
QUARTER

(unaudited;
$ in millions)

 

Q4 2022 Reported

 

Q4 2021 Reported

 

Growth

 

Q4 2022 Constant Currency

 

Growth at Constant Currency

Revenue

 

 

 

 

 

 

 

 

 

Concerts

$     3,395.9

 

$     2,044.2

 

66%

 

$     3,545.2

 

73%

Ticketing

          651.3

 

          487.7

 

34%

 

          669.8

 

37%

Sponsorship
& Advertising

          245.6

 

          170.3

 

44%

 

          251.5

 

48%

Other and
Eliminations

             (2.2)

 

              1.0

 

*

 

             (2.2)

 

*

 

$     4,290.6

 

$     2,703.2

 

59%

 

$     4,464.3

 

65%

 

 

 

 

 

 

 

 

 

 

Consolidated
Operating Income (Loss)

$       (119.9)

 

$       (124.5)

 

4%

 

$       (116.0)

 

7%

 

 

 

 

 

 

 

 

 

 

Adjusted
Operating Income (Loss)

 

 

 

 

 

 

 

 

 

Concerts

$       (184.8)

 

$       (122.3)

 

(51%)

 

$       (180.7)

 

(48%)

Ticketing

          227.7

 

          212.1

 

7%

 

          228.9

 

8%

Sponsorship
& Advertising

          117.7 

 

          114.5 

 

3%

 

          122.5

 

7%

Other and
Eliminations

             (4.7)

 

             (2.3)

 

*

 

             (4.7)

 

*

Corporate

           (58.1)

 

           (41.7)

 

(39) %

 

           (58.1)

 

(39) %

 

$          97.8

 

$        160.3

 

(39%)

 

$        107.9

 

(33%)

* Percentages are not
meaningful

FINANCIAL HIGHLIGHTS – 12
MONTHS

(unaudited;
$ in millions)

 

12 Months 2022 Reported

 

12 Months 2021 Reported

 

Growth

 

12 Months 2022 Constant Currency

 

Growth at Constant Currency

Revenue

 

 

 

 

 

 

 

 

 

Concerts

$   13,494.1

 

$     4,722.2

 

*

 

$   14,020.2

 

*

Ticketing

       2,238.6

 

       1,134.3

 

97%

 

       2,291.9

 

*

Sponsorship
& Advertising

          968.1

 

          411.9 

 

*

 

          999.4

 

*

Other and
Eliminations

           (19.6)

 

              0.1

 

*

 

           (19.6)

 

*

 

$   16,681.2

 

$     6,268.5

 

*

 

$   17,291.9

 

*

 

 

 

 

 

 

 

 

 

 

Consolidated
Operating Income (Loss)

$        732.1

 

$       (417.9)

 

*

 

$        772.0

 

*

 

 

 

 

 

 

 

 

 

 

Adjusted
Operating Income (Loss)

 

 

 

 

 

 

 

 

 

Concerts

$        169.7

 

$       (221.3)

 

*

 

$        191.7

 

*

Ticketing

          827.9

 

          420.5

 

97%

 

          839.0

 

100%

Sponsorship
& Advertising

          592.0

 

          242.2

 

*

 

          616.1

 

*

Other and
Eliminations

           (14.5)

 

             (6.9)

 

*

 

           (14.5)

 

*

Corporate

         (167.9)

 

         (110.6)

 

(52) %

 

         (167.9)

 

(52) %

 

$     1,407.2

 

$        323.9

 

*

 

$     1,464.4

 

*

* Percentages are not
meaningful

Reconciliation of Adjusted
Operating Income to Operating Income (Loss) (Unaudited)

 

Q4 2022

Q4 2021

 

12 Months 2022

12 Months 2021

 

(in millions)

Adjusted Operating Income

$            97.8

$          160.3

 

$       1,407.2

$          323.9

Acquisition expenses

              38.9

              28.1

 

              68.2

              43.0

Amortization of non-recoupable ticketing contract advance

              22.9

              25.2

 

              79.0

              74.4

Depreciation and amortization

            131.5

            102.5

 

            450.0

            416.3

Gain on sale of operating assets

                0.5

              (0.2)

 

            (32.1)

              (1.2)

Stock-based compensation expense

              23.9

            129.2

 

            110.0

            209.3

Operating
income (loss)

$        (119.9)

$        (124.5)

 

$          732.1

$        (417.9)

KEY
OPERATING METRICS

(unaudited)

 

2022

 

2021

 

2020

 

(in thousands except estimated events)

Concerts (1)

 

 

 

 

 

Estimated events:

 

 

 

 

 

North America

            29,169

 

            12,004

 

              5,270

International

            14,475

 

              5,408

 

              2,847

Total estimated events

            43,644

 

            17,412

 

              8,117

Estimated fans:

 

 

 

 

 

North America

            69,693

 

            26,330

 

              6,075

International

            51,459

 

              8,935

 

              5,067

Total estimated fans

          121,152

 

            35,265

 

            11,142

Ticketing (2)

 

 

 

 

 

Estimated number of fee-bearing
tickets

          280,861

 

          131,685

 

            31,101

Estimated number of
non-fee-bearing tickets

          269,814

 

          145,047

 

            88,823

Total estimated tickets sold

          550,675

 

          276,732

 

          119,924

 _________

Events generally represent a
single performance by an artist. Fans generally represent the number of people
who attend an event. Festivals are counted as one event in the quarter in which
the festival begins, but the number of fans is based on the days the fans were
present at the festival and thus can be reported across multiple quarters.
Events and fan attendance metrics are estimated each quarter.

The fee-bearing tickets
estimated above include primary and secondary tickets that are sold using our
Ticketmaster systems or that we issue through affiliates. This includes primary
tickets sold during the year regardless of event timing, except for our own
events where our concert promoters control ticketing which are reported when
the events occur. The non-fee-bearing tickets estimated above include primary
tickets sold using our Ticketmaster systems, through season seat packages and
our venue clients’ box offices, along with tickets sold on our “do it yourself”
platform. These ticket metrics are net of any refunds requested and any
cancellations that occurred during the period, which may result in a negative
number. Fee-bearing tickets sold above are net of refunds of 19.7 million and 21.0 million
for years ended December 31, 2022 and 2021, respectively.

Reconciliation of Certain
Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited)

Reconciliation
of Free Cash Flow
Adjusted to Net Cash Provided by
Operating Activities

($ in millions)

Q4 2022

 

Q4 2021

Net cash
provided by operating activities

$                 903.7

 

$                 755.9

Less: Changes in operating assets and liabilities (working
capital)

                 (844.3)

 

                 (682.2)

Free cash flow from earnings

$                   59.4

 

$                   73.7

Less: Maintenance capital expenditures

                   (70.2)

 

                   (30.9)

         
Distributions to noncontrolling interests

                   (18.8)

 

                   (26.8)

Free cash flow
— adjusted

$                 (29.6)

 

$                   16.0

 

 

 

 

Net cash used
in investing activities

$               (425.0)

 

$               (455.2)

 

 

 

 

Net cash provided by (used in) financing
activities

$                   31.9

 

$                 (51.0)

($ in millions)

2022

 

2021

Net cash
provided by operating activities

$              1,832.1

 

$              1,780.6

Less: Changes in operating assets and liabilities (working
capital)

                 (637.9)

 

              (1,774.0)

Free cash flow from earnings

$              1,194.2

 

$                     6.6

Less: Maintenance capital expenditures

                 (127.0)

 

                   (68.1)

         
Distributions to noncontrolling interests

                 (100.7)

 

                   (52.4)

Free cash flow
— adjusted

$                 966.5

 

$               (113.9)

 

 

 

 

Net cash used
in investing activities

$               (784.7)

 

$               (567.0)

 

 

 

 

Net cash provided by (used in)
financing activities

$               (143.3)

 

$              1,171.3

Reconciliation of Free Cash
to Cash and Cash Equivalents

($ in millions)

December 31,
2022

Cash and cash equivalents

$                       5,606.5

Client cash

                       (1,532.8)

Deferred revenue — event-related

                       (2,731.8)

Accrued artist fees

                          (129.7)

Collections on behalf of others

                            (53.9)

Prepaid expenses — event-related

                           606.2

Free cash

$                       1,764.5

As of December 31, 2022, total cash and cash equivalents were $5.6 billion, which includes $1.5 billion in ticketing client cash and $1.8 billion in free cash. This free cash, along with $565.9 million of available debt capacity, gives the
company $2.3 billion of available
liquidity. The company believes this level of liquidity will provide its needs
to fund operations and future investment opportunities.The company expects capital
expenditures to be approximately $450 million
in 2023 as we continue catching up on projects delayed due to supply chain
constraints and further expand our global platform.

Forward-Looking Statements,
Non-GAAP Financial Measures and Reconciliations:

Certain statements in this press release,
including the Supplemental Information that follows, constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
include, but are not limited to statements the regarding company’s position for
ongoing growth, the global nature of untapped fan demand and the opportunities
the company has for growth; the strength of consumer demand globally for
concerts with no indications of any slowdown; the company’s belief that greater
transparency on the entire ticketing ecosystem will reinforce the positive
roles Live Nation and Ticketmaster play to support artists, venues, and other
event organizers; the company’s four leading indicators pointing toward another
record year and even greater success in 2023; the company’s belief that its
current level of liquidity will provide its needs to fund operations and future
investment opportunities; and the company’s current expectations for capital
expenditures for 2023.

Live Nation wishes to caution you that there are some known and unknown
factors that could cause actual results to differ materially from any future
results, performance or achievements expressed or implied by such
forward-looking statements, including but not limited to operational challenges
in achieving strategic objectives and executing on the company’s plans, the
risk that the company’s markets do not evolve as anticipated, the potential
impact of any economic slowdown and operational challenges associated with
selling tickets and staging events.

Live Nation refers you to the documents it files from time to time with
the U.S. Securities and Exchange Commission, or SEC, specifically the section
titled “Item 1A. Risk Factors” of the company’s most recent Annual Report filed
on Form 10-K, and Quarterly Reports on Form 10-Q and its Current Reports on
Form 8-K, which contain and identify other important factors that could cause
actual results to differ materially from those contained in the company’s
projections or forward-looking statements. You are cautioned not to place undue
reliance on these forward-looking statements which speak only as of the date on
which they are made. All subsequent written and oral forward-looking statements
by or concerning Live Nation are expressly qualified in their entirety by the
cautionary statements above. Live Nation does not undertake any obligation to
publicly update or revise any forward-looking statements because of new
information, future events or otherwise.

This press release contains certain non-GAAP financial measures as
defined by SEC Regulation G. A reconciliation of each such measure to its most
directly comparable GAAP financial measure, together with an explanation of why
management believes that these non-GAAP financial measures provide useful information
to investors, is provided herein.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that we define as operating income (loss) before certain
stock-based compensation expense, loss (gain) on disposal of operating assets,
depreciation and amortization (including goodwill impairment), amortization of non-recoupable
ticketing contract advances and acquisition expenses (including transaction
costs, changes in the fair value of accrued acquisition-related contingent
consideration obligations, and acquisition-related severance and compensation).
We use AOI to evaluate the performance of our operating segments. We believe
that information about AOI assists investors by allowing them to evaluate
changes in the operating results of our portfolio of businesses separate from
non-operational factors that affect net income (loss), thus providing insights
into both operations and the other factors that affect reported results. AOI is
not calculated or presented in accordance with GAAP. A limitation of the use of
AOI as a performance measure is that it does not reflect the periodic costs of
certain amortizing assets used in generating revenue in our business.
Accordingly, AOI should be considered in addition to, and not as a substitute
for, operating income (loss), net income (loss), and other measures of
financial performance reported in accordance with GAAP. Furthermore, this
measure may vary among other companies; thus, AOI as presented herein may not
be comparable to similarly titled measures of other companies.

Constant Currency is a non-GAAP financial measure when applied to
a GAAP financial measure. We calculate currency impacts as the difference
between current period activity translated using the current period’s currency
exchange rates and the comparable prior period’s currency exchange rates. We
present constant currency information to provide a framework for assessing how
our underlying businesses performed excluding the effect of foreign currency
rate fluctuations.

Free Cash Flow —
Adjusted,
or FCF, is a non-GAAP financial measure that we define as net cash provided by
(used in) operating activities less changes in operating assets and
liabilities, less maintenance capital expenditures, less distributions to
noncontrolling interest partners. We use FCF among other measures, to evaluate
the ability of operations to generate cash that is available for purposes other
than maintenance capital expenditures. We believe that information about FCF
provides investors with an important perspective on the cash available to
service debt, make acquisitions, and for revenue generating capital
expenditures. FCF is not calculated or presented in accordance with GAAP. A
limitation of the use of FCF as a performance measure is that it does not
necessarily represent funds available for operations and is not necessarily a
measure of our ability to fund our cash needs. Accordingly, FCF should be
considered in addition to, and not as a substitute for, net cash provided by
(used in) operating activities and other measures of financial performance
reported in accordance with GAAP. Furthermore, this measure may vary among
other companies; thus, FCF as presented herein may not be comparable to
similarly titled measures of other companies.

Free Cash is a non-GAAP financial
measure that we define as cash and cash equivalents less ticketing-related
client funds, less event-related deferred revenue, less accrued expenses due to
artists and cash collected on behalf of others, plus event-related prepaids. We
use free cash as a proxy for how much cash we have available to, among other
things, optionally repay debt balances, make acquisitions and fund revenue
generating capital expenditures. Free cash is not calculated or presented in
accordance with GAAP. A limitation of the use of free cash as a performance
measure is that it does not necessarily represent funds available from
operations and it is not necessarily a measure of our ability to fund our cash
needs. Accordingly, free cash should be considered in addition to, and not as a
substitute for, cash and cash equivalents and other measures of financial
performance reported in accordance with GAAP. Furthermore, this measure may
vary among other companies; thus, free cash as presented herein may not be
comparable to similarly titled measures of other companies.

LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS

 

December 31,
2022

 

December 31,
2021

 

(in thousands, except share data)

ASSETS

 

 

 

Current assets

 

 

 

    Cash and cash
equivalents

$            5,606,457

 

$            4,884,729

    Accounts
receivable, less allowance of $63,294 and $50,491, respectively

             1,465,383

 

             1,066,573

    Prepaid expenses

                949,826

 

                654,894

    Restricted cash

                   5,917

 

                   3,063

    Other current
assets

                131,939

 

                 74,834

Total current
assets

             8,159,522

 

             6,684,093

Property, plant and equipment, net

             1,487,663

 

             1,091,929

Operating lease assets

             1,571,395

 

             1,538,911

Intangible assets

 

 

 

    Definite-lived
intangible assets, net

             1,050,622

 

             1,026,338

    Indefinite-lived
intangible assets, net

                368,712

 

                369,028

Goodwill

             2,529,380

 

             2,590,869

Long-term advances

                568,558

 

                552,697

Other long-term assets

                724,989

 

                548,453

Total assets

$          16,460,841

 

$          14,402,318

LIABILITIES AND EQUITY

 

 

 

Current liabilities

 

 

 

    Accounts
payable, client accounts

$            1,791,025

 

$            1,532,345

    Accounts payable

                180,076

 

                110,623

    Accrued expenses

             2,368,434

 

             1,645,906

    Deferred revenue

             3,134,800

 

             2,774,792

    Current portion
of long-term debt, net

                620,032

 

                585,254

    Current portion
of operating lease liabilities

                140,232

 

                123,715

    Other current
liabilities

                 68,716

 

                 83,087

Total current
liabilities

             8,303,315

 

             6,855,722

Long-term debt, net

             5,283,467

 

             5,145,484

Long-term operating lease liabilities

             1,654,525

 

             1,606,064

Other long-term liabilities

                455,971

 

                431,581

Commitments and contingent liabilities

 

 

 

Redeemable noncontrolling interests

                669,766

 

                551,921

Stockholders’ equity

 

 

 

Preferred stock—Series A Junior Participating, $0.01 par
value; 20,000,000 shares authorized; no shares issued and outstanding                             

                        —

 

                        —

Preferred stock, $0.01 par value; 30,000,000 shares
authorized; no shares issued and outstanding                              

                        —

 

                        —

Common stock, $0.01 par value; 450,000,000 shares
authorized; 231,671,647 and 225,082,603 shares issued and 231,263,623 and
224,674,579 shares outstanding in 2022 and 2021, respectively

                   2,285

 

                   2,220

    Additional
paid-in capital

             2,698,316

 

             2,897,695

    Accumulated
deficit

            (2,971,229)

 

            (3,327,737)

    Cost of shares
held in treasury

                  (6,865)

 

                  (6,865)

    Accumulated
other comprehensive loss

                (90,076)

 

              (147,964)

Total Live
Nation stockholders’ equity

              (367,569)

 

              (582,651)

Noncontrolling interests

                461,366

 

                394,197

Total equity

                 93,797

 

              (188,454)

Total liabilities and equity

$          16,460,841

 

$          14,402,318

LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

 

Year Ended December 31,

 

2022

 

2021

 

2020

 

(in thousands, except share and per share data)

Revenue

$     16,681,254

 

$       6,268,447

 

$       1,861,178

Operating expenses:

 

 

 

 

 

Direct operating expenses

       12,337,524

 

        4,355,989

 

        1,402,400

Selling, general and administrative expenses

        2,955,884

 

        1,754,822

 

        1,524,342

Depreciation and amortization

           449,976

 

           416,277

 

           485,025

Loss (gain) on disposal of operating assets

           (32,082)

 

             (1,211)

 

                 503

Corporate expenses

           237,834

 

           160,428

 

           102,100

Operating income (loss)

           732,118

 

          (417,858)

 

       (1,653,192)

Interest expense

           278,483

 

           282,440

 

           226,832

Interest income

           (77,620)

 

             (6,625)

 

           (11,737)

Equity in losses (earnings) of nonconsolidated affiliates

           (10,571)

 

             (2,520)

 

              5,458

Loss (gain) from sale of investments in nonconsolidated
affiliates

               (448)

 

           (83,578)

 

              1,727

Other expense (income), net

             36,827

 

              3,692

 

           (18,807)

Income (loss) before income taxes

           505,447

 

          (611,267)

 

       (1,856,665)

Income tax expense (benefit)

             96,254

 

             (2,481)

 

           (28,875)

Net income (loss)

           409,193

 

          (608,786)

 

       (1,827,790)

Net income (loss) attributable to noncontrolling interests

           113,207

 

             42,118

 

          (103,255)

Net income (loss) attributable to common stockholders of
Live Nation

$         295,986

 

$        (650,904)

 

$     (1,724,535)

 

 

 

 

 

 

Basic net income (loss) per common share available to
common stockholders of Live Nation

$              0.66

 

$             (3.09)

 

$             (8.12)

Diluted net income (loss) per common share available to
common stockholders of Live Nation

$              0.64

 

$             (3.09)

 

$             (8.12)

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

Basic

     224,809,558

 

     217,190,862

 

     212,270,944

Diluted

     231,556,866

 

     217,190,862

 

     212,270,944

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to net income (loss) available to common
stockholders of Live Nation:

 

 

Net income (loss) attributable to common stockholders of
Live Nation

$         295,986

 

$        (650,904)

 

$     (1,724,535)

Accretion of redeemable noncontrolling interests

          (146,770)

 

           (19,771)

 

              1,180

Net income (loss) available to common stockholders of Live
Nation—basic and diluted

$         149,216

 

$        (670,675)

 

$     (1,723,355)

 

 

 

 

 

 

LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

 

Year Ended December 31,

 

2022

 

2021

 

2020

 

(in thousands)

CASH FLOWS FROM
OPERATING ACTIVITIES

 

 

 

 

 

Net income (loss)

$               409,193 

 

$              (608,786)

 

$         (1,827,790)

Reconciling items:

 

 

 

 

 

Depreciation

                 225,770 

 

                 222,840 

 

                245,713 

Amortization

                 224,206 

 

                 193,437 

 

                239,312 

Amortization of non-recoupable ticketing contract advances

                    79,043 

 

                    74,406 

 

                  47,971 

Deferred income tax benefit

                      7,199 

 

                    (9,639)

 

                (37,877)

Amortization of debt issuance costs and discounts

                    16,448 

 

                    37,260 

 

                  32,774 

Provision for uncollectible accounts receivable

                    68,612 

 

                  (17,826)

 

                  43,076 

Stock-based compensation expense

                 110,049 

 

                 209,337 

 

                116,889 

Unrealized changes in fair value of contingent
consideration

                    56,704 

 

                    (6,732)

 

                (24,448)

Equity in losses of nonconsolidated affiliates, net of
distributions

                    14,912 

 

                    11,189 

 

                  18,280 

Loss (gain) on sale of investments in nonconsolidated
affiliates

                      1,357 

 

                  (83,578)

 

                    1,727 

Other, net

                  (19,283)

 

                  (15,333)

 

                (18,472)

Changes in operating assets and liabilities, net of
effects of acquisitions and dispositions:

 

 

 

 

 

Decrease (increase) in accounts receivable

                (463,977)

 

                (485,211)

 

                490,588 

Decrease (increase) in prepaid expenses and other assets

                (267,945)

 

                    95,533 

 

                141,631 

Increase (decrease) in accounts payable, accrued expenses
and other liabilities

              1,002,158 

 

              1,315,722 

 

           (1,379,461)

Increase in deferred revenue

                 367,617 

 

                 847,949 

 

                826,699 

Net cash provided by (used in) operating activities

              1,832,063 

 

              1,780,568 

 

           (1,083,388)

CASH FLOWS FROM
INVESTING ACTIVITIES

 

 

 

 

 

Advances of notes receivable

                (115,992)

 

                  (28,899)

 

                (56,957)

Collections of notes receivable

                    20,527 

 

                    23,835 

 

                  80,963 

Investments made in nonconsolidated affiliates

                  (91,186)

 

                (110,589)

 

                 (11,242)

Purchases of property, plant and equipment

                (347,206)

 

                (152,734)

 

              (213,746)

Cash paid for acquisitions, net of cash acquired

                (257,191)

 

                (384,251)

 

                (41,083)

Purchases of intangible assets

                    (6,080)

 

                    (7,100)

 

                   (8,863)

Proceeds from sale of investments in nonconsolidated
affiliates

                      3,863 

 

                    90,432 

 

                  19,003 

Other, net

                      8,574 

 

                      2,344 

 

                    7,863 

Net cash used in investing activities

                (784,691)

 

                (566,962)

 

              (224,062)

CASH FLOWS FROM
FINANCING ACTIVITIES

 

 

 

 

 

Proceeds from long-term debt, net of debt issuance costs

                 122,251 

 

                 903,827 

 

             1,607,365 

Payments on long-term debt

                  (45,792)

 

                (109,705)

 

                (30,987)

Contributions from noncontrolling interests

                    15,021 

 

                    22,026 

 

                    5,418 

Distributions to noncontrolling interests

                (100,660)

 

                  (52,368)

 

                (41,624)

Purchases and sales of noncontrolling interests, net

                  (48,306)

 

                    (9,638)

 

              (106,242)

Proceeds from sale of common stock, net of issuance costs

                            — 

 

                 449,630 

 

                          — 

Proceeds from exercise of stock options

                    35,775 

 

                    30,618 

 

                  30,647 

Taxes paid for net share settlement of equity awards

                  (76,925)

 

                  (45,845)

 

                (47,539)

Payments for deferred and contingent consideration

                  (44,220)

 

                  (17,319)

 

                (66,992)

Other, net

                       (484)

 

                         106 

 

                          36 

Net cash provided by (used in) financing activities

                (143,340)

 

              1,171,332 

 

             1,350,082 

Effect of exchange rate changes on cash, cash equivalents
and restricted cash

                (179,450)

 

                  (43,585)

 

                  29,565 

Net increase in cash, cash equivalents, and restricted
cash

                 724,582 

 

              2,341,353 

 

                  72,197 

Cash, cash equivalents and restricted cash at beginning of
period

              4,887,792 

 

              2,546,439 

 

             2,474,242 

Cash,
cash equivalents and restricted cash at end of period

$            5,612,374 

 

$            4,887,792 

 

$           2,546,439 

The post Live Nation Entertainment Reports Fourth Quarter & Full Year 2022 Results appeared first on Live Nation Entertainment.